Mobile payment management

ABSTRACT

A method for managing mobile payments in a mobile phone. The method includes receiving data associated with a plurality of issuer specific payment services at a mobile phone, selecting one of the issuer specific payment services, and conducting a transaction using the phone.

CROSS-REFERENCES TO RELATED APPLICATIONS

This patent application is a non-provisional of and claims priority toU.S. provisional patent application No. 60/884,212, filed on Jan. 9,2007 and U.S. provisional patent application No. 60/884,290, filed onJan. 10, 2007, both of which are herein incorporated by reference intheir entirety for all purposes.

This application is also related to U.S. patent application Ser. No.11,971,586, entitled “Mobile Phone Payment With Disabling Feature”(Attorney Docket No. 16222U-038330US), U.S. patent application Ser. No.11,971,711, entitled “Mobile Phone Payment Process including ThresholdIndicator” (Attorney Docket No. 16222U-038340US), and U.S. patentapplication Ser. No. 11/971/687, entitled “Contactless Transaction”(Attorney Docket No. 16222U-03831 OUS) all of which are being filed onthe same day as the present application. These applications are hereinincorporated by reference in their entirety for all purposes.

BACKGROUND

People of all ages around the world use a mobile phone as an essentialcomponent of their day. In some parts of the world they are the primarycommunication device, but mobile phones are more than just communicationdevices. They are truly multi-functional, providing the consumer withthe capability to not only place and receive phone calls but also totake photos, send text messages, listen to music, surf the Web, and evenwatch movies.

Consumer demand for all-purpose multi-functional mobile phones isincreasing. Technology that supports a mobile payments infrastructure isemerging (i.e., contactless payment acceptance infrastructure,NFC-enabled mobile phones, and robust mobile networks). The mobile phonehas the potential to enhance the security and convenience of using apayment product as well as introduce payment products to parts of theworld that don't currently have a support infrastructure for traditionalpayment products.

Consumers are interested in mobile payments and better ways to conducttransactions using mobile phones and better ways to manage the paymentprocess are needed.

Also, in some cases, a consumer may have two or more payment cards(e.g., credit cards) and may want to use the account numbers associatedwith those payment cards using his or her phone. The different issuersfor those credit cards may have different payment services that can beprovided with those cards. It would be desirable to allow a user to usethe different payment services offered by such issuers on a singlephone.

Embodiments of the invention address these and other problemsindividually and collectively.

BRIEF SUMMARY

Embodiments of the invention are directed to improved consumer mobilephone payment systems and methods.

One embodiment of the invention is directed to a method. The methodcomprises receiving data associated with a plurality of issuer specificpayment services at a mobile phone; entering a selection of one of theissuer specific payment services as a default service; and conducting atransaction using the mobile phone using the one selected issuerspecific payment service.

Another embodiment of the invention is directed to a computer readablemedium comprising code for receiving data associated with a plurality ofissuer specific payment services at a mobile phone; code for entering aselection of one of the issuer specific payment services as a defaultservice; and code for conducting a transaction using the mobile phoneusing the one selected issuer specific payment service.

Another embodiment of the invention is directed to a phone comprising: aprocessor; a memory operatively coupled to the processor, the memorycomprising code for receiving data associated with a plurality of issuerspecific payment services at a mobile phone, code for entering aselection of one of the issuer specific payment services as a defaultservice, and code for conducting a transaction using the mobile phoneusing the one issuer specific payment service; a display operativelycoupled to the processor; and an antenna operatively coupled to theprocessor.

Another embodiment of the invention is directed to a method comprising:sending data associated with a plurality of issuer specific paymentservices to a mobile phone comprising a contactless element, which iscapable of allowing the phone to communicate contactlessly with acontactless reader in a point of sale terminal; and sending a pluralityof messages from the plurality of issuers to the mobile phone.

Another embodiment of the invention is directed to a computer readablemedium comprising code for sending data associated with a plurality ofissuer specific payment services to a mobile phone comprising acontactless element, which is capable of allowing the phone tocommunicate contactlessly with a contactless reader in a point of saleterminal; and code for sending a plurality of messages from theplurality of issuers to the mobile phone.

These and other embodiments of the invention are described in furtherdetail below.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows a block diagram of a system according to an embodiment ofthe invention.

FIG. 2 shows screen shots on a phone display illustrating aconfiguration process.

FIG. 3 shows screen shots on a phone illustrating a payment process.

FIGS. 4-6 show various screen shots on a phone display with transactionmessages.

FIGS. 7-8 show various screen shots on a phone display for balanceinquiries.

FIGS. 9( a)-9(b) show various screen shots on a phone display forpayment reminders.

FIGS. 10, 11(a), and 11(b) show screenshots associated with balancealerts.

FIG. 12 shows a screen shot indicating that an account is blocked due tosuspicious activity.

FIG. 13 shows screen shots illustrating discounts.

FIGS. 14( a) and 14(b) shows screen shots illustrating different issuerspecific mobile payment applications that a consumer can select from,and a subsequent screen shot illustrating that a specific mobile paymentapplication has become a default application.

FIG. 15 shows screen shots associated with the selection of an issuerspecific mobile payment application as a default application.

FIG. 16 shows a block diagram of a computer apparatus.

FIG. 17 shows a block diagram of a mobile phone with a contactlesselement.

DETAILED DESCRIPTION

I. Mobile Transaction Systems

Embodiments of the invention combine payment functions with a range ofvalue-added applications and features, such as coupons, personalization,and account management. Embodiments of the invention make it easy forissuers and mobile operators to offer convenient new services toconsumers via mobile phones.

Some features of embodiments of the invention include the following:

Payment for telephone services (either prepaid or postpaid): Embodimentsof the invention allow a consumer to pay for phone services using apayment application on the consumer's phone.

Contactless payment at the point of sale: Using embodiments of theinvention, consumers can easily and quickly use their phone in lieu of acard for payment at merchant locations.

Remote payment: Using embodiments of the invention, a consumer can usehis or her mobile phone to pay for goods and services for anycard-not-present type of transaction. To use remote payment, theconsumer can register his or her payment account number with a mobileoperator and then the mobile operator links the consumer's paymentaccount number to the mobile phone number. Whenever the consumerconducts a card-not-present type of transaction (e.g., mail order,telephone order, or Internet purchase), the consumer can provide his orher registered mobile phone number (rather than his or her paymentaccount details) to make the purchase. Mobile money transfers can alsotake place remotely, but these transactions are unique because theyinvolve the transfer of funds rather than purchases.

Service providers can supply the system's payment and value-addedfunctions via SMS messages (or other messaging protocol) over a mobilenetwork to the consumer's mobile phone. Examples of payment functionsinclude proximity payment, remote payment, and mobile money transfer.Examples of value-added functions include offers, authentication, andtop-up of minutes on the mobile phone.

FIG. 1 shows a system according to an embodiment of the invention.Referring to FIG. 1, the participants in embodiments of the inventioncan include traditional payment services participants such issuers 14,merchants 16, and consumers 10. Other participants also include a mobileoperator 26 and mobile service providers such as a messaging serviceprovider 20, a directory services provider 22, and an OTA (over the air)service provider 24.

The system may also comprise a number of specific components. Examplesof such components include an offer engine 18, a messaging gateway20(a), a directory services engine 22(a), and a service activationsystem 24(a).

The system may also comprise a mobile phone 10(a), which can includemobile phone components such as an NFC communications element 10(a)-1(near field communications element; which is an example of a contactlesselement), a secure element comprising a payment application 10(a)-2, andresident applications 10(a)-3 including one or more mobile applications10(a)-3′ and one or more download managers 10(a)-3″.

Messages may pass between the components illustrated in FIG. 1.Reference number 2 shows arrows for offer management messages, referencenumber 4 shows arrows for service activation messages, reference number6 shows arrows for directory service messages, and reference number 8shows arrows for account management messages.

The various components below are described in further detail below.

II. Payment Service Types and Value Added Services

Embodiments of the invention may facilitate at least three types ofpayment protocols. The first type may include proximity payment (i.e.,contactless payment) for face-to-face payments at a merchant's place ofbusiness. The second type may include remote payment for payments takingplace in an e-commerce environment or other card-not-present situations.The third type may include mobile money transfers (i.e.,person-to-person payment) for transferring funds from one person toanother for personal, rather than business, use.

Proximity payment offers the same functionality as conventionalcontactless card transaction processing, but instead of using acontactless card, the consumer presents a mobile phone containing apayment application to a point of sale (POS) device in a merchant'splace of business. The NFC-enabled phone emulates a contactless card anduses the same communication standards. The POS device is the same asthose used for contactless cards and the payment application interactswith the POS device in the same way a contactless card does. Payment isinitiated via a mobile phone rather than a card, but is otherwiseidentical to contactless transaction processing.

The payment application that is used in a phone 10(a) according to anembodiment of the invention can support at least two different proximitypayment configurations. The first configuration is “always-on.” When thepayment configuration is in always on mode, the default paymentapplication 10(a)-2 is always active so that the consumer can initiate atransaction by waving the phone 10(a) in front of the POS device withouthaving to select the pay function. The second configuration is “manual.”When the payment configuration is in manual mode, the consumer 10 canaccess the payment application 10(a)-2 and select the pay function tomake the proximity payment. During this process the consumer 10 can alsoselect the account to use for payment. The issuer 14 can specify whichof these configurations, or issuer specific payment service that isassociated with the account, is the default and can also specify whetherthe consumer has the option of choosing a default payment configuration.The proximity payment functionality can be compatible with VisaContactless Payment Specification (VCPS) 2.0.2. Embodiments of theinvention also allow more than one payment application to reside in thesecure element and for one of the payment applications to be selected asa default.

Remote payment makes it possible for consumers to use their mobile phoneto initiate and authenticate card-not-present transactions between aconsumer and a merchant. Remote payments take place over the mobilenetwork and do not involve interacting with a POS device. Remote paymenttransactions are based on mobile phone numbers instead of accountnumbers so no financial information is sent over the mobile network.Card-not-present transactions include Internet, call center, andautomated services such as interactive voice response (IVR)transactions, as well as face-to-face interactions. Remote payments canuse the consumer's registered mobile phone 10(a) as an authenticationchannel. To use the remote payments function, consumers may registertheir mobile phone number with a directory service provider 22 or otherentity and may link it to an account number so that they can use theregistered phone number for payment.

A mobile money transfer refers to a transaction between two individuals.Mobile money transfer allows a cardholder or consumer to transfer moneyfrom his or her card or account to another card or account using amobile phone 10(a). It enables consumers to easily send money to anindividual via a mobile phone over the mobile network for internationalremittances and domestic person-to-person money transfers. Consumers canuse mobile money transfer to pay a friend or another individual (who isnot a merchant) for services.

Mobile money transfers can rely on aliases instead of accountinformation to transfer funds, so no financial information is sent overthe mobile network. Consumers who want to send money can register theiraccount and link it to their mobile phone number. They can alsodesignate the recipients and assign an alias to them. Recipients canregister in the service but are not required to do so to receive thefunds that are sent to them.

Embodiments of the invention may also provide for a number of valueadded features including offers, authentication for security purposes,account management, and top-up of mobile phone minutes.

An offer can refer to a coupon, discount, or promotion that an issuer,merchant, or a payment processing organization such as Visa sends to themobile application on the consumer's mobile phone. The consumer can usethe mobile application to redeem the offer.

The offer feature can include at least three elements. The threeelements include the offer engine 18 that the merchant 16 or issuer 14uses to define the offer, the offer message format that ensures deliveryto the mobile application (the offer message format can be Visa MobileData Format (VMDF)), and the mobile application 10(a) that the offersare sent to. The consumer uses the mobile application 10(a) to managethe offer and to redeem it at a merchant's POS device.

Consumers register (opt-in) with their issuer to receive offers. To sendan offer, the merchant or issuer can define the offer and submit it to apayment processing organization such as Visa for review and approval.After the offer is approved, it is entered into the offer engine 18 andis scheduled for delivery to the consumers 10 who have opted-in toreceive it. The offer engine 18 formats the offer in a suitable messageformat and delivers it via SMS or some other mobile channel to themobile application 10(a)-3 on the consumer's mobile phone 10(a).

The consumer's offers can be delivered to the mobile application 10(a)-3separate from other messages and can be presented in a defined andbranded format. The mobile application 10(a)-3 integrates offer deliveryand management with point-of-sale payment. It enables consumers to view,manage, and redeem the offers that they receive. The application 10(a)-3supports some automated offer management, such as delete on expiry. Theoffers can include a bar code or promotional code that the merchantscans or enters at the time of purchase. When redeeming offers at amerchant's establishment the consumer can use the mobile phone'sproximity payment functionality.

Authentication provides a mechanism for the issuer to requestinformation from the mobile phone that makes it possible for the issuerto confirm that the phone, and the consumer, is indeed what and who theyclaim to be. It enables all parties in an e-commerce transaction totransmit confidential and correct payment data, and providesauthentication that the buyer is an authorized user of a particularaccount. Both mobile remote payment and mobile money transfer featuresuse payment authentication capabilities.

The top-up feature enables a mobile phone to automate the purchase ofminutes on a pre-paid phone. This service is a specific implementationof the remote payment feature. It uses the same mechanism as the remotepayments service in that the consumer is purchasing minutes from amobile operator.

III. Account Management

Account management services include the mobile management of paymentaccount profiles and transactions, ranging from conventional mobilebanking to new mobile account management tools. Account managementservices can be linked to an issuer-specific payment service and can beoffered as an extension of the issuer's existing account managementservices. The mobile payment account management feature can integratewith existing issuer bank systems as well as any future accountmanagement service provider, whether it is a bank or another thirdparty.

Each issuer 14 can decide what account management features are availableto the consumer. Consumers 10 can use the mobile application 10(a)-3′ torequest current account balances, receive payment-applied notices andtransaction receipts, and configure and receive balance alerts,transaction alerts, and payment reminders. When account managementservices are available to the consumer 10, the consumer 10 can configurethe features to deliver account information based on consumer criteria.For example, the consumer can request to receive an alert when his orher account balance reaches a specified threshold.

The mobile payment system uses messaging to support account managementservices. The messaging system formats the message and sends it via themobile operator's network 26. Consumers 10 send messages requestingaccount management services and the issuer 14 or merchant 16 sendmessages in response.

The following table lists the account management messages that are sentfrom the mobile application 10(a)-3′ on the consumer's mobile phone10(a) to the issuer 14 or merchant 16 and from the issuer 14 or merchant16 to the mobile application 10(a)-3′ on the mobile phone 10(a).

Message Sent From To Balance alert configuration request Consumer IssuerBalance inquiry request via mobile Payment reminder configurationrequest application Transaction alert configuration request Balancealert configuration response Issuer Consumer Balance alert via mobileBalance inquiry response application Payment applied Payment reminderconfiguration response Payment reminder Transaction alert configurationresponse Transaction alert Transaction failure receipt Merchant ConsumerTransaction success receipt via mobile application

The issuer 14 is traditionally responsible for acquiring, registering,and supporting consumer payment accounts. In the mobile transactionsystem, in addition to handling the payment accounts, the issuer 14 alsohas the option of supporting account management and offer managementfeatures. These account management and offer management features may befeatures of an “issuer-specific payment service.” Furthermore, becausepayment account activation can occur after the consumer 10 has acquiredthe mobile phone 10(a), the issuer's traditional card issuance processescan migrate to an OTA service activation environment.

The merchant 16 accepts payment with a payment account in bothbrick-and-mortar and e-commerce settings. The merchant 16 can also usethe mobile payment system to issue offers to the mobile customer base,which can range from a targeted subset to the entire set of accountholders.

The messaging service provider 20 provides the message interfacesbetween the consumer's mobile phone 10(a) and the other providers. Thisprovider operates the messaging gateway 20(a) and related systems.

The OTA service provider 24 manages the secure element 10(a)-2 on themobile device 10(a), including provisioning secure element applications.

The directory services provider 22 supplies support for remote paymentand mobile money transfer transactions that use an alias associated witha registered consumer 10 to route to relevant account information.

The consumer 10 uses a mobile phone 10(a) to access the mobile paymentand value-added services. The consumer 10 requests the downloading andpersonalization of any applications onto the mobile phone 10(a).

The mobile operator 26 provides and provisions the mobile network,including the data services needed to support the above-describedservices. The mobile operator 26 also typically selects the mobilephones that its network supports and the applications that function onthese mobile phones. It also sends messages to and receives messagesfrom the mobile phone 10(a).

Messaging enables the interaction between disparate platformparticipants. Messages support account management, basic offers, andservice activation as well as directory services for remote payments andmobile money transfer.

Some embodiments of the invention are directed to using variouscombinations of messages to manage a consumer's payment accounts. Oneembodiment of the invention comprises receiving an account balanceinquiry response message using a mobile phone. The mobile phonecomprises a contactless element that is configured to communicate with acontactless reader in a point of sale terminal. The account balanceinquiry response message provides an account balance for an accountassociated with the mobile phone, the mobile phone being operated by aconsumer. The method also includes receiving a transaction alert messageusing the mobile phone, wherein the transaction alert informs theconsumer that a transaction has occurred using the account, and alsoreceiving an offer message, wherein the offer message provides a benefitfor the consumer if the consumer uses the mobile phone to a conductpredetermined transaction. Such message may be received by the mobilephone 10(a) and may be displayed by the mobile phone 10(a).

The mobile operator 26 or any other suitable entity may correspondinglysend a balance inquiry response message, transaction alert message, andan offer message to the mobile phone. The mobile operator 26 may operatea communications server comprising a processor, and a computer readablemedium operatively coupled to the processor. The computer readablemedium can comprise code for sending the various messages to the mobilephone 10(a).

The messaging service provider 20 formats the messages the issuer 14,merchant 16, and other service providers send and delivers them to themobile application 10(a)-3′ on the mobile phone 10 via the mobilenetwork. It also formats and delivers account management messages theconsumer 10 sends via the mobile application 10(a)-3′ on the mobilephone 10 to the issuer 14 and merchant 16.

The basic protocol followed for messages sent to and from the mobileapplication 10(a)-3′ can be the Visa Mobile Data Format (VMDF). Allmessages can be in VMDF format by the time they reach the messaginggateway 20(a) to ensure that they are delivered to the mobileapplication 10(a)-3′. The VMDF is not SMS-specific. It encompasses theuse of any text or binary data provided for the application over thenetwork and for local storage purposes.

The messaging service provider 20 operates the messaging gateway 20(a),which supplies a unified message interface between other providers andparticipants and the consumer's mobile phone 10(a). The messaginggateway 20(a) supports at least three features. The first feature is analert API which facilitates the transfer of messages both to and fromthe mobile application 10(a)-3′ on the consumer's mobile phone 10(a).The second is a reporting Web interface which allows issuers 14,merchants 16, and a payment processing organization such as Visa tomonitor the relevant traffic to and from the consumer's mobile phoneapplications. The third is a testing hub that is an interface thatallows participants to send messages to and receive messages from avirtual mobile application to test the readiness of their systems. Thetesting hub supports both account management and offer messaging.

The offer engine 18 is the system that is responsible for managingoffers. Its capability may range from being a simple user interface (UI)through which merchants 16 can define offers to a sophisticated databasemarketing system that can target offers to consumers based on a widerange of demographic and behavioral data. In addition, the messaginggateway 20(a) supports an offers Web interface, which acts as the offerengine. It is a basic Web-based UI through which merchants 16 can definesimple offers for delivery to all consumers 10.

The process of enabling a mobile phone is called “service activation,”because it constitutes activation on the mobile phone. Serviceactivation can be used to provision the payment application 10(a)-2′,the mobile application 10(a)-3′, a service activation application,account information, and data (such as data relating to an issuerspecific payment application) onto the mobile phone. Without serviceactivation, such applications can only be issued if the secure element,and in many cases the mobile phone itself, is personalized before theconsumer takes possession of it. While service activation is a generalterm for this activation that could theoretically take place viamultiple channels or means, embodiments of the invention are preferablyfocused on the over-the-air (OTA) provisioning of the paymentapplication to a secure element 10(a)-2 on a mobile phone 10 via themobile network. OTA service activation allows the issuer 14 to securelyenable the phone 10(a) remotely with secure payment and account datawithout requiring the consumer to visit its bank or a retail outlet.

The OTA service provider 24 operates and manages the OTA serviceactivation system 24(a). The OTA service activation system 24(a)provides personalization and issuance functionality as well asday-to-day management of the consumer's secure element applications. Afeature of the OTA service activation system 24(a) is the provisioningand personalization of the secure element applications using the mobileoperator's network. Furthermore, the OTA service provider 24 uses thissystem 24(a) to manage the secure elements deployed in the field afterthey are personalized. This is a desirable feature for managing paymentaccounts. Compromised accounts can be locked and unlocked and theplatform can be removed OTA. The OTA service activation system 24(a)provides information to the mobile phone OTA for loading, installing,and personalizing the software on the phone, locking and unlocking theapplications on the phone, and removing applications from the phone. Itcommunicates with the download manager 10(a)-3″ on the phone to carryout OTA activities.

OTA service activation also provides remote control of mobile phones forcorporate branding, offers, and messaging configuration and programmingof new services without user intervention. It uses OTA technology tocommunicate with the SIM or NFC chip without physical access to thephone 10(a). New services can be securely downloaded without operatorre-issuance of the mobile phone 10(a).

Directory services are used to support mobile money transfers and remotepayments as well as value-added services such as advanced offers (in afuture release of the platform), authentication, and top-up. Directoryservice is desirable for transactions that use an alias associated witha registered consumer to route to other information. It determines whothe consumer is and then routes the relevant consumer information to theissuer.

For mobile money transfers, an alias can be used to identify and/orcontact the recipient of the money transfer. Typically, the directoryallows senders to use an alias that is more convenient or human-friendly(like a mobile number) than an account number. In money transfertransactions, aliases/directories also allow greater privacy between thesender and the recipient. Each party's bank can retain respectivepersonal information belonging to the sender and recipient securely,without the need for the sender and recipient or cardholder and merchant16 to share any personal information with each other to conduct thetransaction.

The mobile phone 10(a) is the conduit between the service providers andthe consumer 10. The mobile phone 10(a) includes a number of distinctfeatures. The first feature is NFC (near field communications) radiocapability which offers card emulation mode to enable proximity payment.It includes an antenna to communicate with the merchant's contactlessPOS device. A second feature is a secure element form factor to securelyhold the payment application. A third feature is an existing mobileapplication space with a mobile application 10(a)-3′ and a downloadmanager 10(a)-3″.

The mobile phone 10(a) can: initiate payment transactions, receive datarelating to issuer specific payment services, present the issuerspecific payment services to a consumer for selection, receive offersfrom issuers and merchants and display them; receive account managementinformation from issuers 14 and display it in the mobile application;and communicate with the OTA service activation system 24(a) for OTAactivities.

To enable mobile payments, the secure element 10(a)-2 provides thefollowing capabilities. It can provide secure storage to protectsensitive data related to mobile payments. This includes private keysassociated with the phone and consumer, public keys, and credentialsassociated with issuers and back end systems. It can also provide theability to securely store consumer-specific personal informationassociated with mobile payments such as a credit/debit card's PAN(personal account number). It can also provide cryptographic functionsto support secure payment protocols, data integrity, andconfidentiality. This includes support for encryption/decryption,signature verification, and authentication of the secure SMS messagesreceived from the issuer, service activation system, and other back endsystems. It can also provide secure deployment and execution environmentfor the mobile payment application 10(a)-3″.

It is understood that although the specific examples described hereininclude the use of a secure element and a payment application within thesecure element, and a mobile application outside of the secure element,embodiments of the invention are not limited to this. For example, thefunctions of the payment application and the mobile application can becombined into one application in any suitable logical section ofhardware in the phone.

The secure element 10(a)-2 can be in one of the following forms:

Embedded hardware: This is a tamper-proof hardware smart card withcontactless capability that is integrated tightly with the mobile phone.Removable Universal Subscriber Identity Module (USIM): The secureelement can be integrated with a USIM card that provides smart cardfunctionality. In this case, the contactless capability is separate.Removable Secure Digital (SD) card: A smart card provides a secureprogrammable environment. Applications and mobile payments-specificsecurity information are provisioned on the smart card. Thecommunication to the secure element on the smart card uses APDUcommands.

The secure element can also provide an integrated NFC capability thatsupports the ISO 14443 standard. The NFC capability provides support forpeer-to-peer, reader/writer, and card emulation modes.

The payment application 10(a)-2′ is securely stored on the mobilephone's secure element 10(a)-2 and is used to conduct paymenttransactions. It may include one of two Java card applications—the VisaSmart Debit/Credit (VSDC) card specification applets integrated with theProximity Payment System Environment (PPSE). The VSDC application is thepayment application; the PPSE application is the directory applicationthat stores the details of the payment application. This is the sameapplication that is used for commercially available Visa paywavecontactless payment cards. The VPA currently uses contactlessspecification VCPS 2.0.2. The current version of the GlobalPlatformapplet is version 2.7.

The payment application 10(a)-2 contains both payment functionality andthe issuer/cardholder personalization data. The payment application10(a)-2 is provisioned and personalized on the secure element 10(a)-2with data the issuer 14 sends OTA through the service activation system24(a). The service activation system 24(a) channels OTA provisioning,initialization, and personalization commands (based on the issuer'sspecification) from the service activation system to the paymentapplication 10(a)-2. A personalized instance of payment application10(a)-2′ can be locked, unlocked, and removed from the secure element10(a) using OTA commands that the issuer 14 initiates through theservice activation system 24(a).

To initiate mobile proximity payments, a specific payment application10(a)-2′ (represented by a unique application identifier (AID)) isassociated with a specific mobile application 10(a)-3′, which links theconsumer experience with the mobile proximity mechanism. In addition,the secure element 10(a)-2 can have a specific payment application10(a)-2′ configured as the default for proximity payments.

The payment application 10(a)-2′ interfaces with a contactless proximitymodem in either manual or automatic mode. When the mobile phone 10(a)comes into proximity of a contactless POS device, the paymentapplication 10(a)-2′ is automatically notified if the application isconfigured in an automatic payment mode. In manual mode, communicationwith the POS is initiated by the consumer 10 via the mobile application10(a)-3′.

The mobile application 10(a)-3 includes the user interface. It containsthe user interface for payment, account management, offer management andredemption, and setting preferences. The mobile application 10(a)-3 is aJ2 ME/MIDP 2.0 application (MIDlet). Mobile Information Device Profile(MIDP) is the specification published for the use of Java on embeddeddevices such as mobile phones. Each mobile application 10(a)-3 can becustomized and configured for a specific issuer and is associated with aspecific payment application instance.

The customization and configuration process can include the receipt ofdata associated with the issuer specific payment application instance,which may be linked to an issuer specific payment service. Inembodiments of the invention, there may be many different issuerspecific payment application instances linked to different issuerspecific payment services. The different issuer specific paymentservices may have different sets of features. For example, one issuermay provide offer messages, and does not provide transaction alertmessages. Another issuer may provide transaction alert messages, butdoes not provide offer messages. In embodiments of the invention, theconsumer 10 may select one issuer specific payment service as a defaultservice for use with his phone 10(a), and then may use the phone 10(a)and the selected issuer specific payment service to conduct transactionssuch as payment transactions. The issuer specific payment services mayinclude specific management services and payment functions.

The mobile application 10(a)-3′ can be OTA provisioned, activated, andconfigured according to the issuer's specifications on the mobile phone10(a) during service activation and initialization. Once configured, anapplication instance appears as an entry in the phone's main menu folderfor mobile payments and other financial applications. There can be morethan one application instance on the menu based on the number ofinstances of the mobile application that have been activated,provisioned, and configured on the phone 10(a).

The user interface can include a splash page that welcomes the consumerto the application, a main menu page of all the features the issuer issupporting, payment-related pages, and the detail pages of the featuresthat the issuer is supporting. The issuer 14 can customize certainvisual elements of the user interface, such as providing a logo andproduct name and customizing the splash screen.

The mobile application 10(a)-3′ can use APDU commands to interface withthe corresponding payment application 10(a)-2′ to enable proximitypayments and provide a secure storage of credentials associated withmobile payments and the consumer 10.

The download manager 10(a)-3″ can be a MIDlet that resides on the mobilephone 10(a) (but not on the secure element 10(a)-2). It is the interfacebetween the service activation system 24(a) and the secure element10(a)-2. It is responsible for initial provisioning, service activation,initialization, management (including locking and unlocking of themobile application 10(a)-3′), and configuration of the mobileapplication 10(a)-3′, the secure element 10(a)-2, and the paymentapplication 10(a)-2′. The download manager 10(a)-3″ interfaces with theservice activation system 24(a) (as part of the backend systems) andlocal device management and provisioning agent on the mobile phone 10(a)for these functions.

IV. Mobile Payment Processes

A number of exemplary payment processes can be described with referenceto FIGS. 2-3.

Referring to FIG. 2, a consumer can select whether a proximity paymentfeature is automatic (always on), manual with no password, or manualwith a password. If the consumer selects automatic, the consumer needsto specify the default payment account. When in automatic mode theproximity payment feature is always active, and the payment applicationwill perform a proximity payment transaction when the consumer waves thephone over a contactless reader. If either of the manual options isselected, the consumer needs to launch the mobile application and needsto choose the pay function to activate the proximity payment feature.

Referring to FIG. 2, the consumer launches the mobile application 302and selects the proximity payments settings option 304. The consumer hasthe option of making the account automatic (always on). If the consumerchooses to make the account always on 306, 308, the mobile applicationsets the configured AID (unique application identifier) to be thedefault. If the consumer chooses not to make the account automatic, theconsumer then has the option of making the account the default paymentaccount when making a manual payment 314, 310, 312.

Referring to FIG. 3, to manually activate the proximity payment feature,the consumer selects a pay or ready-to-pay function within the mobilepayment application. This enables the secure element to emulate acontactless card and interact with a contactless reader associated witha POS terminal. This mode remains active until a specified time periodhas elapsed (the timeout). If the timeout period elapses and theconsumer has not conducted a proximity payment transaction, the mobileapplication deactivates the proximity payment function, requiring theconsumer to reactivate it to proceed with the transaction.

The consumer selects the mobile application to launch it and selects thepayment function 320, 322. The phone displays the “Ready to Pay” pagefor 30 seconds or until the consumer exits the page or the paymenttransaction is completed 324. To proceed with the transaction, theconsumer places the phone in the vicinity of a contactless reader 326.The reader obtains the account information from the secure element onthe phone and completes the transaction. The phone displays a “PaymentSent” page for 15 seconds or until the consumer exits the page. Thephone then reverts to its previous state.

V. Specific Account Management Processes

Referring to FIG. 4, when a message is a transaction receipt, atransaction alert, or a payment-applied message, it is stored in atransaction message repository in the phone. Other messages, such asbalance inquiry, balance alert, and payment reminder messages are notstored in the transaction message repository.

Each item in the message repository can correspond to one particularaccount management event. These events can be supplied OTA as in thecase of most alerts and transaction receipts.

The consumer needs to be in the mobile application to access thetransaction message repository. The mobile application's main menuprovides an option that the consumer can select to open the repositoryas shown in screen shot 330. The repository displays a list oftransaction receipts, transaction alerts, and payment-applied messagesummaries as shown in screen shot 332.

Referring to FIG. 5, as shown by screen shots 334 and 336, the consumercan view the details of transaction receipts, transaction alerts, andpayments that have been applied to the account. Specifically, theconsumer can view three different types of transaction messages:transaction receipts, transaction alerts, and payment-applied messages.The content can be different for each type of message. The consumer canselect the message and then select the view message option, to displaythe message detail screen.

Referring to the screen shots 338 and 340 in FIG. 6, a threshold for atransaction alert can be configured within the mobile application.Alternatively, the alert threshold can be configured on the issuer's Website. If the threshold is surpassed, then a message such as the oneshown in screenshot 340 is shown.

Referring to screen shots 342, 344, and 346 in FIG. 7, the consumer canrequest the existing balance for the credit product that is stored onthe mobile phone's secure element. This is similar to typical remotebanking functionality except instead of a Web channel, this is for themobile phone channel.

After the issuer processes the balance inquiry, the issuer transmits theresponse message to the balance inquiry to the consumer's mobile phone.The balance inquiry is displayed, and also updated in the accountsummary feature of the mobile application for future reference. Therequested balance information includes (1) the issuer's name, (2)current balance, (3) remaining credit available, and (4) disclaimerabout the accuracy of balance information for credit accounts.

Referring to screen shots 348, 350, and 352 in FIG. 8, the consumer isable to request the existing balance for the debit product that isstored on the mobile phone's secure element. This is similar to atypical remote banking functionality. The balance inquiry is displayed,and also updated in the account summary feature of the mobileapplication for future reference The balance information may include (1)the issuer's name, (2) the current balance in debit account, (3) fundsavailable to withdrawal, (4) available balance, and (5) disclaimer aboutthe accuracy of the balance information.

Referring to the screen shots 354, 356, 358, and 360 in FIGS. 9( a) and9(b), the consumer can register or unregister for payment remindersusing the mobile application. The consumer can configure the currentstate of the payment reminder feature (ON/OFF).

The consumer does not have to be alerted about whether the configurepayment reminder operation with the issuer has been successful. Only theconsumer's choices need to be confirmed from within the mobileapplication at the time these choices are made.

Referring to the screen shots 362, 364, and 366 in FIG. 10, the consumeris able to configure the balance level at which a balance alert occurs.This use case describes this option for the case where the paymentinstrument is a credit product. The consumer configures the following:(1) The credit balance at which a balance alert will be generated, and(2) the current state of the balance alert feature (ON/OFF).

The consumer does not have to be alerted about whether the configurebalance alert operation with the issuer has been successful. Only theconsumer's choices need to be confirmed from within the mobileapplication at the time these choices are made.

Referring to the screen shot 372 in FIG. 11( a), the consumer receives abalance alert for a credit product when a predefined threshold has beenexceeded. The issuer generates this alert and it is sent to theconsumer's handset.

Referring to the screen shot 374 in FIG. 11( b), the consumer receives abalance alert for a debit product when a predefined threshold has beenexceeded. The issuer generates this alert and it is sent to theconsumer's handset.

Referring to the screen shot 376 in FIG. 12, the consumer receives anissuer generated risk alert when their payment account has been blockedbecause of reasons specific to the issuer. The issuer generates thisalert and it is sent to the consumer's phone.

Regardless of whether a platform password is configured, the mobileapplication is launched and the message is displayed to the consumer.Once the message is displayed, the consumer will not be given an optionexcept to acknowledge the message, which exits the application. Themessage is never stored in some embodiments.

Embodiments of the invention can also include offers as shown by thescreen shots 378, 380, and 382 in FIG. 13. First, an offer repository onthe phone can be selected as shown in screen shot 378, and the offerrepository is opened and offers are checked for expiry. As shown inscreen shot 380, different merchants offering different offers can bedisplayed. The consumer may select one of them and the merchant'sspecific offer can be displayed. The consumer may thereafter redeem theoffer in any number of ways including using the previously described NFCelement or contactless element to communicate with a POS terminal.

VI. Multiple Issuer Specific Payment Service Capability

As noted above, the customization and configuration process can includethe receipt of data associated with the issuer specific paymentapplication instance, which may be linked to an issuer specific paymentservice. The data may include computer code for an issuer specificapplication, code for an issuer specific instance, or code for a link anissuer specific application or instance. For example, in someembodiments of the invention, there may be many different issuerspecific payment application instances linked to different issuerspecific payment services. The different issuer specific paymentservices may have different sets of features. For example, one issuermay provide offer messages, and does not provide transaction alertmessages. Another issuer may provide transaction alert messages, butdoes not provide offer messages. In embodiments of the invention, theconsumer 10 may select one issuer specific payment service as a defaultservice for use with his phone 10(a), and then may use the phone 10(a)and the selected issuer specific payment service to conduct transactionssuch as payment transactions. The issuer specific payment services mayinclude specific management or value added services and paymentfunctions.

In some embodiments, once loaded to the device, if not more than oneinstance exists on the device, then that instance can be the defaultinstance. In other embodiments, multiple payment applicationsspecifically associated with different issuers can be present on themobile phone. The consumer can select from different issuer specificpayment applications as shown in FIG. 14( a) (applications for Bank A,Bank B and Bank C in window 390). Once a payment application is selected(e.g., Bank B in window 392), it can be set as the default paymentapplication as shown in FIG. 14( b).

Referring to the screen shots 402, 404, 406, 408, 410 in FIG. 15, from ausability standpoint, this process strives to achieve the desired resultwith minimal interaction required from the consumer. It is at thediscretion of the issuer to allow consumer configuration and to whatlevel. The consumer interaction is preferably consistent.

Also from a usability standpoint, it is possible that the issuer willnot allow the consumer any configuration options. For example, theissuer could configure the platform to be automatically enabled (alwayson) with free access (that is, no password required). It is alsopossible that the issuer only allows the consumer to change certainconfiguration options. For example, the issuer could configure theplatform to be manually enabled with mandatory password protected accessin which case the consumer would only be prompted to enter a password.In both of the above cases the consumer is always allowed the option toset the platform as the default for proximity.

VII. Computer Apparatuses and Mobile Phones

The various participants and elements in FIG. 1 may operate one or morecomputer apparatuses to facilitate the functions described herein. Anyof the elements in FIG. 1 including the offer engine 18, the messaginggateway 20(a), the issuer 14, the directory services engine 22(a), theservice activation system 24(a), and the mobile operator 26 may use anysuitable number of subsystems to facilitate the functions describedherein. Examples of such subsystems or components are shown in FIG. 16.The subsystems shown in FIG. 16 are interconnected via a system bus 775.Additional subsystems such as a printer 774, keyboard 778, fixed disk779 (or other memory comprising computer readable media), monitor 776,which is coupled to display adapter 782, and others are shown.Peripherals and input/output (I/O) devices, which couple to I/Ocontroller 771, can be connected to the computer system by any number ofmeans known in the art, such as serial port 777. For example, serialport 777 or external interface 781 can be used to connect the computerapparatus to a wide area network such as the Internet, a mouse inputdevice, or a scanner. The interconnection via system bus allows thecentral processor 773 to communicate with each subsystem and to controlthe execution of instructions from system memory 772 or the fixed disk779, as well as the exchange of information between subsystems. Thesystem memory 772 and/or the fixed disk 779 may embody a computerreadable medium.

FIG. 17 shows a block diagram of another phone 32 that can be used inembodiments of the invention. Such features can be combined with thefeatures shown in the phone 10(a) in FIG. 1. The exemplary wirelessphone 32 may comprise a computer readable medium and a body as shown inFIG. 17. The computer readable medium 32(b) may be present within thebody 32(h), or may be detachable from it. The body 32(h) may be in theform a plastic substrate, housing, or other structure. The computerreadable medium 32(b) may be a memory that stores data (e.g., datarelating to issuer specific payment services) and may be in any suitableform including a magnetic stripe, a memory chip, etc. The memorypreferably stores information such as financial information, transitinformation (e.g., as in a subway or train pass), access information(e.g., as in access badges), etc. Financial information may includeinformation such as bank account information, bank identification number(BIN), credit or debit card number information, account balanceinformation, expiration date, consumer information such as name, date ofbirth, etc. Any of this information may be transmitted by the phone 32.

In some embodiments, information in the memory may also be in the formof data tracks that are traditionally associated with credits cards.Such tracks include Track 1 and Track 2. Track 1 (“International AirTransport Association”) stores more information than Track 2, andcontains the cardholder's name as well as account number and otherdiscretionary data. This track is sometimes used by the airlines whensecuring reservations with a credit card. Track 2 (“American BankingAssociation”) is currently most commonly used. This is the track that isread by ATMs and credit card checkers. The ABA (American BankingAssociation) designed the specifications of this track and all worldbanks must abide by it. It contains the cardholder's account, encryptedPIN, plus other discretionary data.

The phone 32 may further include a contactless element 32(g), which istypically implemented in the form of a semiconductor chip (or other datastorage element) with an associated wireless transfer (e.g., datatransmission) element, such as an antenna. Contactless element 32(g) isassociated with (e.g., embedded within) phone 32 and data or controlinstructions transmitted via a cellular network may be applied tocontactless element 32(g) by means of a contactless element interface(not shown). The contactless element interface functions to permit theexchange of data and/or control instructions between the mobile devicecircuitry (and hence the cellular network) and an optional contactlesselement 32(g).

Contactless element 32(g) is capable of transferring and receiving datausing a near field communications (“NFC”) capability (or near fieldcommunications medium) typically in accordance with a standardizedprotocol or data transfer mechanism (e.g., ISO 14443/NFC). Near fieldcommunications capability is a short-range communications capability,such as RFID, Bluetooth™, infra-red, or other data transfer capabilitythat can be used to exchange data between the phone 32 and aninterrogation device. Thus, the phone 32 is capable of communicating andtransferring data and/or control instructions via both cellular networkand near field communications capability.

The phone 32 may also include a processor 32(c) (e.g., a microprocessor)for processing the functions of the phone 32 and a display 32(d) toallow a consumer to see phone numbers and other information andmessages. The phone 32 may further include input elements 32(e) to allowa consumer to input information into the device, a speaker 32(f) toallow the consumer to hear voice communication, music, etc., and amicrophone 32(i) to allow the consumer to transmit her voice through thephone 32. The phone 32 may also include an antenna 32(a) for wirelessdata transfer (e.g., data transmission).

It should be understood that the present invention as described abovecan be implemented in the form of control logic using computer softwarein a modular or integrated manner. Based on the disclosure and teachingsprovided herein, a person of ordinary skill in the art will know andappreciate other ways and/or methods to implement the present inventionusing hardware and a combination of hardware and software.

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer readable medium, such as a random accessmemory (RAM), a read only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

The above description is illustrative and is not restrictive. Manyvariations of the invention will become apparent to those skilled in theart upon review of the disclosure. The scope of the invention should,therefore, be determined not with reference to the above description,but instead should be determined with reference to the pending claimsalong with their full scope or equivalents.

One or more features from any embodiment may be combined with one ormore features of any other embodiment without departing from the scopeof the invention.

A recitation of “a”, “an” or “the” is intended to mean “one or more”unless specifically indicated to the contrary.

What is claimed is:
 1. A method comprising: receiving a plurality ofissuer specific payment applications associated with a plurality ofissuer specific payment services at a mobile phone, wherein the mobilephone comprises a contactless element that allows the mobile phone tocommunicate contactlessly with a point of sale terminal with acontactless reader; storing the received the plurality of issuerspecific payment applications and a plurality of issuer specific keysrespectively associated with the plurality of issuer specific paymentservices in a secure element in the mobile phone, wherein the mobilephone also stores a plurality of mobile applications respectivelyassociated with the plurality of issuer specific payment applications,the plurality of mobile applications residing on the mobile phoneoutside of the secure element and having respectively different issuerspecific account management services and payment functions; receiving aselection of one of the issuer specific payment services as a defaultservice; and conducting a payment transaction using the mobile phoneusing the one issuer specific payment service.
 2. The method of claim 1wherein the method further comprises, prior to receiving the selection:displaying indicators for the plurality of issuer specific paymentservices so that a consumer can select an issuer specific paymentservice from the plurality of issuer specific payment services.
 3. Themethod of claim 1 wherein payment services in the plurality of issuerspecific payment services have different functions.
 4. A non-transitorycomputer readable medium comprising code, executable by a processor, forimplementing a method comprising: receiving a plurality of issuerspecific payment applications associated with a plurality of issuerspecific payment services at a mobile phone, wherein the mobile phonecomprises a contactless element that allows the mobile phone tocommunicate contactlessly with a point of sale terminal with acontactless reader, storing the received the plurality of issuerspecific payment applications and a plurality of issuer specific keysrespectively associated with the plurality of issuer specific paymentservices in a secure element in the mobile phone, wherein the mobilephone also stores a plurality of mobile applications respectivelyassociated with the plurality of issuer specific payment applications,the plurality of mobile applications residing on the mobile phoneoutside of the secure element and having respectively different issuerspecific account management services and payment functions, receiving aselection of one of the issuer specific payment services as a defaultservice, and conducting a payment transaction using the mobile phoneusing the one issuer specific payment service.
 5. The computer readablemedium of claim 4 wherein the method further comprises: displaying aprompt to select an issuer specific payment service from the pluralityof issuer specific payment services.
 6. A phone comprising the computerreadable medium of claim
 4. 7. A phone comprising the computer readablemedium of claim
 5. 8. A mobile phone comprising: a processor; acontactless element coupled to the processor; a memory operativelycoupled to the processor, the memory comprising a plurality of mobileapplications having respectively different issuer specific accountmanagement services and payment functions; a secure element separatefrom the memory and comprising a plurality of payment applicationsrespectively associated with the plurality of mobile applications, and aplurality of issuer specific keys respectively associated with theplurality of payment applications; a display operatively coupled to theprocessor; and an antenna operatively coupled to the processor.
 9. Themethod of claim 1 wherein the plurality of issuer specific paymentservices comprises a first issuer specific payment service that providestransaction alerts, and a second issuer specific payment service thatdoes not provide transaction alerts.
 10. The method of claim 1 furthercomprising, providing by the mobile phone, an option for the user toindicate that the one issuer specific payment service is always on. 11.The method of claim 1 wherein the plurality of issuer specific paymentservices comprises a first issuer specific payment service that providesfor a remote payment option and a second issuer specific payment servicethat provides for a proximity payment option.
 12. The method of claim 1wherein the plurality of mobile applications provide a plurality ofissuer-specific user interfaces.
 13. The method of claim 1 wherein theplurality of mobile applications comprise a plurality of issuer specificaccount management and offer management features.
 14. The method ofclaim 1 wherein the mobile device further comprises a download managerthat resides outside of the secure element.
 15. The method of claim 1wherein conducting the payment transaction using the mobile phone usingthe one issuer specific payment service comprises placing the mobilephone in the vicinity of a contactless reader of a point of saleterminal, wherein the reader obtains account information from the secureelement.
 16. The method of claim 1 wherein the secure element comprisesa removable universal subscriber identity module.
 17. The method ofclaim 1 wherein each of the issuer specific payment applicationsincludes a Java card application.
 18. The method of claim 1 furthercomprising: provisioning the plurality of issuer specific paymentapplications over the air through a service activation system.
 19. Themethod of claim 18 wherein the service activation system is configuredto provide provisioning, initialization, and personalization commands tothe mobile phone.